Galaxy Note 7 debacle cuts Samsung’s Q3 profit forecast by 33%

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The Galaxy Note 7 was only discontinued a few hours ago, but Samsung is already bracing for the damage to their Q3 profit forecast. An earnings guidance that was issued from Samsung indicates that they’re expecting a massive 33% drop in operating profit, with an additional forecast of a drop of $41.8 billion in revenue. Ouch.

Samsung banked their entire end-of-year business on the Galaxy Note 7 actually being on shelves, so now that it’s gone and they’re in full damage control mode, their plans have been completely turned upside down, and not in a good way. It’s really unfortunate that this came on the heels of an extremely profitable Galaxy S7 launch, but that’s the way it goes when a recalled product derails your year.

It won’t be good for 2016, but expect to see Samsung come out swinging with the Galaxy S8 in 2017.

source: The Verge